HealthMarkets, Inc. (HealthMarkets) is a holding company. HealthMarkets conducts its insurance underwriting businesses through its indirect wholly owned insurance company subsidiaries, The MEGA Life and Health Insurance Company (MEGA), Mid-West National Life Insurance Company of Tennessee (Mid-West) and The Chesapeake Life Insurance Company (Chesapeake), and conducts its insurance distribution business through its indirect insurance agency subsidiary, Insphere Insurance Solutions, Inc. (Insphere). Through its insurance subsidiaries, it issues health insurance policies, covering individuals, families, the self-employed and small businesses, and supplemental products. The Company operates four business segments: the Insurance segment, Insphere, Corporate and Disposed Operations. On April 13, 2010, Insphere completed the acquisition of Beneficial Investment Services, Inc. (BIS), a broker-dealer and registered investment adviser, and changed BIS� name to Insphere Securities, Inc. (ISI).